HARDWOOD RECORD 



iPi 



25 



whatsoever, that regulation has been accomplished only through 

 the control of the majority of the output by some one interest. Various 

 cases can be cited in proof of this statement An example that is espe- 

 cially applicable to the lumber business is that of the German com- 

 munal forests. German forestry' is the recognized type of all 

 forestal work, and is based on an absolute maximum of utiliza- 

 tion. The question naturally arises — how is this accomplished ? 

 Merely by government control. The German government owns 

 practically one-third of the entire forest area of the country, 

 and is in a position to do practically what it pleases as far as 

 forest resources are concerned, whether in cutting, in market- 

 ing, or in the regulation of foreign competition with the local 

 market. As a consequence, there is realized for products of the 

 German woods a figure which would astonish the average Ameri- 

 can lumberman. They do not have to contend with the problem 

 of low grades, because everj-thing is of value, and it is of 

 value only because made so by government regulation. If this 

 were not the case, China would not now be the most sadly de- 

 pleted country in the world as far as forest growth is concerned, 

 for it has certainly had sufficient time and opportunity to work 

 out n plan of conservation if this could possiblj- be done without 

 direct interference from the government. 



Facts seem to indicate that the question in this country will 

 resolve itself into a choice of one of two plans of action; either 

 there will be government control of the forest output, or there 

 will be some form of cooperation among the producers them- 

 selves which will make possible a production along the lines of 

 common sense and will enable manufacturers all over the coun- 

 try to realize on every grade of their product a price which 

 will be in keeping with the public demand for conservative meth- 

 ods of lumbering, a condition which will probably not be real- 

 ized until the average price for stumpage is as much as $20. 



will ultimately aggregate six jjer cent annually on the capitaliza- 

 tion of the railroads of the country. This would mean an advance 

 of $400,000,000 a year. 



Shippers Again the Aggressors 



That a new step in the conflict between the shipping element 

 of the country and the carriers is imminent is evidenced by re- 

 cent action of the Illinois Manufacturers' Association in the reso- 

 lutions which they have drawn up with the intention of having 

 them incorporated in the declaration of principles at the coming 

 shippers ' convention called by Governor Stubbs at Topeko, Kan- 

 sas. The attorne^-s for the shippers have from the first been 

 alert to the necessity of taking the initiative, and have been 

 constantly on the lookout for any loophole of offense which might 

 be left open by the opposing counsel. The opportunity has pre- 

 sented itself in the form of a perpetual injunction issued several 

 years ago in the trans-Missouri rate case, by the Federal Circuit 

 Court at Kansas City. 



By the terms of that injunction the western roads were per- 

 petually prohibited from entering into any conspiracy or com 

 bination for the purpose of advancing freight rates, and it is the 

 contention of counsel acting in behalf of the Illinois Manufac- 

 turers' Association and the big grain, corn and live stock ship- 

 ping associations of the West that the recent attempts on the 

 part of the roads involved are a direct violation of the anti- 

 trust law, and also in acting as they have the railroad companies 

 and officials are directly and personally liable to punishment for 

 contempt of court. 



Inasmuch as the railroad companies have seen fit to grossly 

 disobey the specific instructions issued by one of the highest 

 tribunals of the country and have acted directly in contradiction 

 to specific legislation, the shippers appear to have a strong case, 

 and it is to be hoped that they will take the fullest advantage 

 of an apparently favorable situation. 



That the rate controversy is destined to have a broader sig- 

 nificance than originally appeared seems probable, if the remarks 

 of President Eipley of the Santa Fe have any significance. Mr. 

 Ripley stated under oath before the Commerce Commission, that 

 the present proposed advance is merely an entering wedge, and 

 that it is the desire of the railroads to effect an increase which 



The Record for August 



Just now when business is of an indifferent character it is par- 

 ticularly gratifying to be able to point out one or two signs of 

 returning activity. August, usually considered part of the >mll 

 season of the business year when no one expects great things in 

 trade, this year made a particularly favorable showing, surprising 

 the majority of the trade who had anticipated a continuance of 

 the conditions of -July, which were characteristic of the usual 

 midsummer inactivity. 



As pointing in the direction of betterment are the statistics cov- 

 ering the inspection of hardwood lumber shipped by members of 

 the National Hardwood Lumber Association, during the month 

 of August, j)rinted elsewhere in this issue. As officials of the as 

 sociation and the lumber trade generally had expected that the 

 showing would not be as good as that of July, it is most encour- 

 aging to learn that August inspections exceeded those of the pre- 

 vious month by a considerable margin. The showing for August 

 this year as compared with that of last year is also good, the 

 excess for 1910 being close to 4,000,000 feet. 



Another report of interest is that giving statistics for the 

 amount of hardwood sawed and shipped during August by a good 

 percentage of the members of the Northern Hemlock and Hard- 

 wood Manufacturers' Association, details of which are presented 

 in the news columns of this issue. For the first time this year 

 the statistics issued for the month of August show shipments to 

 have exceeded the cut. The figures for August also compared very 

 favorably with those of the previous seven months of this year, 

 only two months having greater totals and the difference being 

 but slight. 



It would seem that these facts might be taken as an indication 

 of the beginning of improvement in the hardwood lumber trade. 

 With general business in fairly good shape, with the holiday sea- 

 son over, the only cloud on the horizon is the political unsteadi- 

 ness, and this cannot long retard advancement if all other condi- 

 tions are favorable. 



Plan to Increase Export Trade 



Manufacturers, whose aggregate capital is in excess of $^0,- 

 000,000, were represented at a meeting held at the Hotel Imperial, 

 New York City, September 12, when a movement was started 

 for the expansion of the export trade of the country. About 

 fifty of the largest manufacturing concerns in the country were 

 represented by their export managers or other officials while by 

 voice, letter and telegram the meeting actuall}^ embodied one 

 hundred and sixty American manufacturers. 



The outcome of the meeting was the organization of the Ameri- 

 can Manufacturers' Association, whose object will be primarily 

 to bring in closer touch the export managers of American manu- 

 facturing concerns and the manufacturers themselves for the 

 general benefit of the export business of these concerns. The 

 association will also use its influence with the national departments 

 of state and commerce and labor to have them work more faith- 

 fully for the advancement of our foreign trade. Another im- 

 portant object of the new organization is to induce the trans- 

 portation companies to fix freight rates on an equitable basis 

 and to better the service to foreign ports. To protect the trade 

 marks of members and to aid any who get into difficulty with 

 the customs authorities, helping them to get a just settlement, 

 are other purposes which will make the new association of great 

 usefulness to those affiliated with it. 



Such concerns as the International Harvester Co., the Westing- 

 house Co., American Steam Pump Co., A. I. Dupont-DeNemours 

 Co., Studebaker Bros. Co., Henry Disston & Sons, Yale & Towne 

 Mfg. Co., and the Victor Talking Machine Co. were represented at 

 the first meeting. 



